One reason to be concerned about income inequality is the idea that people not only care about their own absolute income, but also their income relative to various reference groups (e.g. co-workers, friends, neighbors, relatives, etc.). We use Canadian linked employer-employee data to estimate...

This paper compares income inequality and income mobility in the Scandinavian countries and the United States during 1980-90. The results suggest that inequality is greater in the United States than in the Scandinavian countries and that this inequality ranking of countries remains unchanged...